Airbnb Are Getting BANNED on residential property

Posted on Posted in Tips & Tricks

More and more JMB Commitee nowadays starting to BAN Airbnb usage on their property.

P/s:: after i write this article, most of the AIRBNB operators will definitely HATE me. But i still wish to tell the ugly truth to public and disclose most of the airbnb operators bias intention.

WHY…❓❓❓
Read to protect yourself Dear Property Owners.

 

1). As a Resident who live there
I believe you do not want different differnt strangers tourists to be wandering in and out within your property. If its decent tourist then its fine… but what if its illegal activity like drugs, prostitution, xxx party causing vandalism to your the surrouding within the building. And this is definitely happening i CONFIRM. Oh yea… THEFT or Burglary is the most usual crime scene. U may not know what will happen further. Better to be safe than sorry. So as a residents perspective point of view definitely i DO NOT want airbnb within my residence.

 

2). As a Property Owner for Investment purpose
Obviously when the market is slowing like now, plus many more supply coming up. Property prices are relatively high plus the interest rates as the financing cost comparable to the current Rental Market which is relatively low. General Income are not growing, and rental rates are decreasing affected by the mass incoming supply. Investors Rental Yied ROI fall below 4% not being able to cover Installment Interest.

Thanks to Airbnb, atleast the platform are giving property investors the opportunity to optimize the Monthly Return by renting on Daily Basis with higher CashFlow Revenue.

If the owner is able to furnish it nicely and manage it themself i would say definitely the owner is alble to generate POSITIVE CASHFLOW. However most of the property owners are not capable to manage the property due to work & time commitments therefore handing over to AIRBNB OPERATORS. And when handed over to Airbnb Operators, the nightmare comes…

when passing over to Operators, they will first ask the owner to sign the Renovation Furnish Package which they already make a PROFIT out of the service. Usually cost between RM30-50k. After that officially to start airbnb business. Normally they never sign contract, even if sign they never commit and pay 3months Security Deposit compare to longlease tenants. The Operators will manage the property rental normally base on 70:30% profit sharing structure. And if occupancy is high, up to 70-80% monthly occupancy. The Property Owners return is usually only able to breakeven with installment. And the Operator is happily SUCKING 30% PROFIT Sharing from the owners property Daily Rental Revenue.

What if the season is low and occupancy drops to 30-50% and the revenue of 70:30% return falls way below your installment? The owner have to bare the DEFICIT LOSSES. But… the Operator is still happily SUCKING PROFIT of 30% from Revenue. 🀣😈 they dont care about your money but only their profit. Excuse is = Market is Slow, Low Season. *(lame excuse come on).

Why dont u blame on your own unskillful marketing and strategy instead of passing the blame to the market. Easy… can cover their asses.

 

3). As a AIRBNB OPERATOR who profits from renting owner’s property
They will be so PISSED OFF because their rice bowl has been COMPROMISED… No KangTao for them anymore. They dont have to commit the Guranteed Minimum Rental to the owner. If the owner feeling unhappy hence terminated the service, these parasites Operator will be hopping to another Owner/host/prey(building).

Long story cut short… Theres pros and cons in everything depending on which situation you are in.

All the best in managing your property.

-Jay’Lord

 

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